Shiba Inu’s (SHIB) price has been consolidating within a triangle pattern on its daily chart, signaling a potential breakout. However, on-chain data raises concerns about the asset’s ability to maintain its crucial support level between $0.000022 and $0.000023. This zone, backed by approximately 33 trillion SHIB held by 45.78% of in-the-money addresses, faces mounting selling pressure. If this support level breaks, SHIB could experience a significant decline.
Buying Activity Sustains Current Price
The In/Out of the Money data reveals strong buying activity in the $0.000022-$0.000023 range. This demand has helped SHIB hold its current price zone. However, resistance above $0.000025 remains a challenge, dominated by out-of-the-money addresses looking to sell.
Source: CoinMarketCap
These red zones create a barrier, making it difficult for SHIB to rise without an increase in buying demand. If SHIB’s support at $0.000022 fails, the price might target the next significant support levels at $0.000018 and $0.000019.
Related article: Shiba Inu Approaches Historic Milestones with Burn Rate Spike
These levels correspond to past buying activity and could provide a cushion against further decline. Confidence in the $0.000022 level appears to be waning, increasing the likelihood of a downward move.
Triangle Pattern Suggests Imminent Breakout
SHIB’s price hovers near the apex of a tightening triangle formation, a structure that often precedes a major price move. A breakout above $0.000025 could reignite bullish momentum, potentially pushing the price toward the $0.000028 resistance.
Related article: Shiba Inu Lead Outlines Steps for Boosting Shibarium Adoption
On the downside, if SHIB breaks below $0.000022, the 200-day moving average at $0.000018 and a trendline from its recent rally may serve as critical support. SHIB’s future direction will likely depend on market sentiment and trading volume in the coming days.
Investors should monitor key levels, especially the $0.000022 support and $0.000025 resistance, for signs of a breakout or breakdown. Any shift in demand or overall market weakness could significantly impact SHIB’s trajectory.
